Labor Shortages in the Hospitality Industry: The Effects of Work-life Balance, Employee Compensation, Government-Issued Unemployment Benefits and Job Insecurity on Employees’ Turnover Intentions

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Author: Karine Grigoryan

Issue: Spring Issue, 2024

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The purpose of this quantitative research was to identify the factors causing labor shortages in the hospitality industry in the post-pandemic era. Specifically, it examined the effects of work-life balance, employee compensation, government-issued unemployment benefits, and job insecurity on employees' turnover intentions. The research methodology employed in this study was a quantitative survey, with a sample size of 385 participants from the hotel, restaurant, bar industry, and food service sector. The findings indicated work-life balance, employee compensation, and job insecurity had a significant impact on employees' turnover intentions, as the null hypotheses for these factors were rejected. However, the government-issued unemployment benefits (EDD) did not show any significant impact, indicating further research is needed to gain deeper insights into the potential influence of these benefits. These findings contribute to the understanding of the challenges faced by the hospitality industry in retaining employees and highlight the importance of addressing work-life balance, compensation, and job insecurity to mitigate employee turnover.